Krause working with EDC board to improve the Thumbs economy

TRACI ANDERSON

Published 12:23 pm, Monday, April 25, 2016

He and his staff want to be able to grow and provide utility services to new and expanding businesses and new homes, and the existence of these is dependent upon economic stability and growth. So, it makes perfect sense that Krause has been a long time member of the Huron County Economic Development Corp. board.

Krause was asked to be on the board in the late 1980s, and he's been a vital member of the board ever since.

Krause is a native of Elkton and a 1967 graduate of Laker High School. For 10 years, he worked in the Flint/Detroit area, but he decided to move back to the county.

"My heart was always in the Thumb," he said.

Because of his ties to the Thumb, Krause has a sincere interest in the economic achievement of Huron County. As a member of the 10-member board, he's worked on a wide variety of projects, from job training to getting grants for businesses to improving infrastructure in the area.

Krause said the work accomplished by the board wouldn't be possible without the EDC staff, including the executive director.

"The most important thing a board does is hire a competent director," he said. "The best we've done (as a board) is to hire Carl Osentoski (as executive director)."

Krause praises Osentoski for his ability to devise new ideas and projects on a constant basis.

"He's always dreaming up new things; he thinks outside of the box," Krause said. "Sometimes he (approaches the board) with an idea to do something, and I think, 'He's going to do what?' But then he goes and gets it done."

Krause attends EDC board meetings once a month for two hours.

"We do a lot of brainstorming and planning at our meetings," he said.

When he's not at EDC board meetings, Krause is keeping close tabs on what's going on in his community and in his area of expertise.

"Each person on the board has a specialty area, and mine is energy," he said. "My goal is to be the ear in the community. When I find something that could be helpful to the EDC, I share the information with Carl."

Krause said an important role of the board is to gauge what's happening locally and worldwide and working on planning long term goals.

"We need to be visionaries and planners," he said. "We try to keep the economy growing in the Thumb. It's a long term process. It takes time and it doesn't happen overnight."

He said the board has great diversity because of the different industries represented on it, including manufacturing, agriculture, utilities, banking, education, and retail.

"We all want to make the county better," Krause said.

He said many people in the county don't realize the impact the EDC board has on getting projects completed in the county.

"We're behind the scenes on a lot of projects in the area," he said. "We deal with a diversity of things… We're not a controversial board. We avoid the politics of the issues and we get right to the project to get it accomplished."

One of the first projects Krause worked on as a member of the board was to find an appropriate use for the Port Austin Air Base. At the time, one idea was to have it become an area for a prison, which raised the ire of many residents in the area who didn't want a prison so close to a tourist area.

"They were right, but on the other hand, it could've brought 500 jobs to the area," Krause said.

A more recent project Krause is proud of is the installation of passing lanes on M-53 south of Bad Axe - a project that took years of work to accomplish and at times, it was uncertain whether or not it would happen.

"The EDC board was the driving force behind the plans for the passing lanes," he said. "We kept pushing (the Michigan Department of Transportation) to put (them in)."

Krause said having sound infrastructure, such as roads, utilities, and communication technology, is vital to helping current businesses compete and succeed as well as bringing in new businesses. He said if the infrastructure is not there and is not continually improved, the economy will suffer as a result.

Another project Krause is proud of is bringing in Dow Agrosciences to Harbor Beach.

"It was a team effort between the EDC and the City of Harbor Beach," he said.

The EDC also was involved in the establishing of Thumb Oilseed Producers Cooperative, which helped to bring added value to agriculture, one of the main industries in the county.

With a large grant, the EDC also helped Huron Casting Inc. upgrade its electric service, which allowed the plant to grow and offer more jobs.

With a grant from Michigan State University, the EDC is now working on a unique small business incubator project that is focusing on value-added agriculture. It would provide the infrastructure and resources for area entrepreneurs looking to start a business, perhaps someone with a great strawberry jam or apple pie recipe or someone who makes wine. The incubator would provide assistance to those looking to start a business, eventually allowing the business to move out of the incubator and on its own, possibly filling an empty building, employing people, and boosting the economy. The initial cost and risk to the entrepreneur would be minimal.

The project is in the market feasibility state right now, Osentoski said, and a location for the incubator, which will be a kitchen incubator, is being sought. It's possible that there could be multiple locations for it, he said.

While the EDC works to help current businesses succeed and to bring new businesses into the area, it has to keep the wants and needs of the communities in mind.

"We're trying to find businesses to come into the area, but there's a balancing act," he said. "We have to find things that people want here."

He pointed out that Huron County is very unique with its three major industries: agriculture, tourism, and manufacturing. The balancing act comes in because the three industries can conflict with one another. For instance, tourists don't want to be on a beach and smell waste from a farm or factory.

"There's not necessarily any type of business or industry that can't be in Huron County, but we have to figure out where to locate different types of businesses," he said. "It's a challenge, but I've learned to never say never. We need to work with other agencies in the county and do a sound master plan."

He said the EDC is currently working with other county agencies on a Land Conservancy study. The study is being done to examine which land areas need to remain as they are, such as agricultural areas, and which areas can be developed and where a new business could be built.

"There needs to be buffer zones between the various (industry areas)," he said. "People want to keep the quality of life they're used to."

For instance, Krause said because the agriculture industry is so vital to the county, large agriculture operations are needed in the area to keep the economy going.

"We need to find ways to accommodate them without affecting the quality of life for other people," he said.

Another hot topic for the EDC board is bioenergy - turning farm waste into an energy supply, such as methane, that can be used to produce other products.

"We're looking at the possibility of using methane gas for greenhouses that can be used to grow flowers or things for biomedicine that pharmaceutical companies can use," Krause said. "We're also looking at using methane gas to heat ponds so fish (can be produced). There are many possibilities."

He said bringing added value to agriculture is very important in keeping the local economy growing.

"We need to look at what resources we have that we can utilize," he said.

Another resource being looked into by the EDC board is broadband technology.

"Communication technology is very important," Krause said. "Companies need to be competitive in the global market. The world is getting smaller because of (technology)."

He said in order for a company to move to an area, having the latest technology available, such as broadband, is crucial to that company's success in an area. Therefore, in order for the county to attract new businesses and to keep current businesses, the availability of broadband is very necessary.

"We need to be able to compete with other areas - not just in the state, but nationally and worldwide," he said.

With all the projects the EDC board works on, being involved with the board has been quite a rewarding experience for Krause.

"The most rewarding part is seeing a plan that we've worked on for five (or more) years come through," he said.

He said being able to attain numerous grants and revolving loan funds has greatly helped new businesses in the area.

"It's gratifying to see a small business succeed," he said. "The risk we take (in getting the funding) is worth it."

He said it pleases him that people in the county go to the EDC for help.

"It makes you feel like you're doing something right when people look to you for leadership," he said. "It tells you that you're on the right track."

He said the most challenging part of being on the EDC board is "making sure we're continuing to look at new ideas and not becoming stagnant."

The EDC board is not the only board with which Krause has been active. Krause has been involved with local church and school boards and is a member of the Michigan Electric Cooperative Association board, the Michigan Agricultural Electric Council, and the National Information Systems Cooperative. He's also involved with the Bad Axe Rotary and the Jaycees.

"Being involved in the groups gives me a good feeling on what's going on around me," he said.

Krause started at Thumb Electric Co-op as an engineer in 1976. Four years later, he took over as general manager.

Krause's wife, Grace, is a fourth grade teacher at Bad Axe Intermediate. They have three children: Ryan, Abbie London, and Lindsey.

The other members of the EDC board include Dorothy Anderson, Denise Austin, Mary Babcock, Joe Maust, William Mayes, Bud McCormick, Jeff Schock, Larry Siemen, Richard Tobey, and Ron Wruble as the appointed county commissioner. The terms are for six years.